Auto insurance - Renters Insurance

1. Auto Insurance • www.lifethenfinance.com www.lifethenfinance.com

3. Importance of Auto Insurance: • Incase your are involved in a car accident or vandalism • It is the law in many states • Just because you are a good driver doesn’t mean that accidents can’t happen. • Can you afford to replace or repair your car if it’s damaged? • Can you guarantee that everyone on the road is a great driver and they won’t hit your car? www.lifethenfinance.com

4. Two Types of Auto Insurance: • Liability insurance: • Automobile insurance is a state law in the majority of states. The type of insurance they require drivers to carry is liability insurance. • Liability insurance insures the driver for the cost of any damage or injury that is caused to someone else during an accident. • Comprehensive insurance: • Also known as Full-coverage insurance. • This insurance covers basic liability insurance and pays to repair of replace the policyholder’s vehicle, damage to personal property, other vehicles and bodily injury. • It also covers any type of damage caused such as; fire, theft, flood, vandalism or collision. www.lifethenfinance.com

5. Difference Between liability & comprehensive Auto Insurance: • The coverage limits in the policies. • Many automobile insurance companies cover: • Bodily injury • Property damage • Uninsured motorist • Underinsured motorist • Within these types of coverage there are individual coverage limits described in the policy. www.lifethenfinance.com

6. Liability & Comprehensive Auto Insurance: • Three numbers, 50/100/25, describe liability insurance. • This refers to the amount of coverage, usually covered in the policy. • For example, 50/100/25 coverage includes $50,000 of bodily injury to a single individual, $100,000 of bodily injury caused to everyone in an accident, and $25,000 of property damage. • Comprehensive insurance tends to have higher coverage limits and includes: • Uninsured motorists • Underinsured motorists • Some policies cover for rental car service while your vehicle is being repaired. www.lifethenfinance.com

7. Auto Insurance: Cont…. • It is vital to purchase and maintain car insurance. Without it, there is a huge amount of risk to yourself, others, and your future finances. • If you get in an accident without car insurance and you cause $80,000 in damages and medical costs, the courts will likely determine that you are responsible to pay the money. • The court can garnish wages (automatically take your pay) to repay the money owed, thus severely stifling income for many years to come. www.lifethenfinance.com

8. Shopping for Auto Insurance: • Shopping for insurance can take some time, but with the Internet you can obtain quotes fast. • Read the policies and special provisions carefully to make sure you are evaluating comparable insurances. • Bottom line: • Younger people pay higher insurance costs than older Americans. • It’s a fact: teenage drivers cause a lot of accidents. • In fact, the number one killer of teens does not have a trigger or a plunger – it has a steering wheel. www.lifethenfinance.com

9. Auto Insurance: Ways to lower the cost. • Good driver discounts: • Insurance premiums will increase if you get speeding tickets. • Get too many tickets, you may not be able to find insurance at all. • Good grades: • As a teen driver, good grades may lower insurance rates with many companies. • Good car: • Young adults that purchase sports cars or 4-wheel drive vehicles pay more. • Insurance companies figure the insured driver will be driving fast or off-road, and they don’t want that. • This explains why Mom and Dad do not want you to drive that the new BMW, but prefer you take the Honda. www.lifethenfinance.com

10. Importance of Renter’s Insurance • To protect your belongings incase of theft, leakage or natural disaster like earthquakes. • Take an inventory of what you have and what it would cost to replace it. • If you just have an old couch and some clothes, you probably don’t want to add the expense of this insurance. • On the other hand, if you have designer clothes, computers, furniture and other items that would cost you a lot to replace, take a look into renters insurance. www.lifethenfinance.com

11. Coverage Limits on Renter’s Insurance • These coverage limits pertains to personal property. • Examples of coverage limits are: • Electronics • Personal Clothing • Furniture • Appliances • Deductibles and premiums work the same with this type of policy. www.lifethenfinance.com

12. Steps to ensure you have enough Insurance Coverage: • Contact the companies you currently have your insurance with and 2 other companies and make comparisons. • Ask a lot of questions and take good notes. • Consult with a trusted, knowledgeable, friend that may help you sort through the information you received. • Make a decision to keep your policies the same or make changes so you are better protected. • A knowledgeable agent can help you pick the best insurance to protect you and save you money. www.lifethenfinance.com

13. Insurance information …. • All insurance policies are made up of an actual policy and a premium. • This defines that coverage in the policy and the amount you will pay for the coverage. www.lifethenfinance.com

14. Commonly used Insurance definitions: • Insurance policy: • An insurance contract that describes the type and amount of coverage, as well as the premiums and deductibles included in the policy • Insurance premium : • The payment made to an insurance company in exchange for an insurance policy guaranteeing protection or coverage on what you insure. • Deductible: • The amount of the loss you pay out of pocket to the insurance company on the damaged good. • For example: If you get in a car accident and have $4,000 in damage and a $500 • deductible, the insurance company will pay everything but $500. The $500 is your responsibility. • . www.lifethenfinance.com

15. Commonly used Insurance definitions: Cont…. • Coverage limits: • The maximum amount paid by an insurance company. • Example: Your insurance covers only $50,000 in damages and you have $60,000 in damages, they will only pay up to the coverage limit. • Insurance policy: • An insurance contract that describes the type and amount of coverage, as well as the premiums and deductibles included in the policy. www.lifethenfinance.com

16. What are insurance claims • What are insurance claims? • What do you need to be aware of with insurance claims? • How can insurance adjusters affect your claim? www.lifethenfinance.com